Understanding Your P2P Loan Cost Estimation:

• Estimates Only: Calculations are based on your inputs. Actual loan terms, rates, and fees vary significantly between P2P lending platforms and depend on your creditworthiness and other factors.
• Origination Fees: P2P loans often include origination fees, a one-time charge for processing the loan. This fee is an additional cost on top of the interest paid. This calculator treats the fee as an upfront cost that adds to the total expense of the loan.
• Effective APR: Due to origination fees, the effective Annual Percentage Rate (APR) of a P2P loan will be higher than the nominal interest rate stated. This calculator focuses on total cost; for a precise APR, refer to the platform's official disclosures (e.g., Truth in Lending disclosure).
• Platform Specifics: Each P2P platform has its own fee structure (e.g., 1% to 8% of loan amount, or higher), interest rate ranges (often based on risk grades assigned to borrowers), and terms. Some platforms may deduct fees from the disbursed loan amount (meaning you receive less than you applied for, but repay the full applied amount), while others might present it differently.
• Review Carefully: Always thoroughly review the loan agreement and all disclosures provided by the P2P platform before accepting a loan. Understand all costs involved and how fees are handled.

This tool is for illustrative purposes only and does not constitute financial advice.